[Congressional Record Volume 146, Number 135 (Wednesday, October 25, 2000)]
[Extensions of Remarks]
[Pages E1912-E1913]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCTION OF THE RESPONSIBLE DEBT RELIEF AND DEMOCRACY REFORM ACT

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                      Wednesday, October 25, 2000

  Mr. WOLF. Mr. Speaker, I am introducing the Responsible Debt Relief 
and Democracy Reform Act, legislation intended to provide debt relief 
to poor countries that have an insurmountable debt burden and to 
encourage these same countries to implement reforms for sound democracy 
and the maintenance of a civil society.
  Many of the poorest countries of the world are struggling with 
democracy or with bad governance, and they are caught in a downward 
spiral of debt. Their futures are difficult and uncertain because of an 
overwhelming debt burden.
  Many of the poorest countries have to spend an exorbitant amount of 
their budgets simply to make their debt payments. The rock singer, 
Bono, a vocal advocate for providing debt relief to heavily indebted 
poor countries, says, ``A country like Niger, with a life expectancy of 
47 years, spends more paying off their debts than on health and 
education combined.''
  Indeed, a country like Niger is not alone. Debt payments by the poor 
countries of the world can consume as much as 30-40 percent of a 
country's revenue. The chances of these countries ever paying back 
their loans is slim, to none. Realistically, none of their debt is 
going to be repaid.
  The problem is that it is the poorest people of the world in the 
poorest countries who suffer as a result of their governments' massive 
debt. The poorest of the poor struggle to find food to survive. 
Suffering from malnourishment, their immune systems are lowered and 
people catch horrible diseases that wrack their bodies. The poor 
countries of the world have an alarmingly low life expectancy rate, 
with reports indicating that the average person in Sierra Leone only 
lives for 27 years. Canceling or reducing the debt of the poorest 
countries of the world is an opportunity for the U.S. to alleviate the 
suffering that these people face.
  An article in Sojourners magazine describes part of the problem in 
Africa:

       It might seem odd to describe Hamsatou, a 13-year old girl 
     in the West African country of Niger, as lucky. A mysterious 
     flesh-eating disease known as ``the Grazer'' has consumed the 
     left side of her face, leaving a gaping hole at the side of 
     her nose, through which you can see her pink, unprotected 
     tongue. She shields her head in embarrassment in her village, 
     has no prospect of marriage, and rarely walks further than 
     the nearby well. ``When I go to the market . . . I'm ashamed 
     of myself. I cover my face so people won't stare at me and 
     laugh.''
       But Hamsatou is lucky because she is alive. One in three 
     children in Niger, the world's poorest country, do not reach 
     5 years of age. And while the Grazer will kill 120,000 
     children in the world this year, a $3 mouthwash would have 
     ensured she need never have succumbed to its ravages. 
     Unfortunately the government of Niger does not have $3 to 
     spare. Three quarters of its annual tax revenue is spent on 
     servicing its $1.4 billion international debt. Sojourners 
     May-June 2000

  Unfortunately, many of these poor countries that have insurmountable 
debt and that need democratic reform are in Africa. The Clinton 
Administration's Africa policies have failed across the board. `` 
`African Renaissance' Hailed By Clinton Now a Distant Memory'' is the 
title of a recent article in the Los Angeles Times by Robin Wright. Ms. 
Wright says that just two years ago, President Clinton hailed what he 
called an ``African renaissance.'' Now, despite several years of 
rhetoric on Africa by the Clinton administration, this article states 
that a recent national intelligence estimate says that ``Africa faces a 
bleaker future than at any time in the past century.'' Most Africans 
are worse off now than they were eight years ago.
  The U.S. can help provide hope and opportunity for those who may be 
hopeless. Providing debt relief to the poorest governments of the 
world, if done in the right way, can free these governments to better 
address the needs of their own people.
  But simply canceling a country's debt doesn't necessarily pave the 
way to good government. The governments of poor countries are often 
part of the
  That is why the legislation I propose today will provide incentives 
to countries to reform

[[Page E1913]]

their governments, to institute needed democratic reforms and basic 
structures of a civil society such as, respect for human rights, 
promoting religious freedom, freedom of the press, and freedom of 
association.
  This legislation says that debt relief by the U.S. will be provided 
to countries that meet the following requirements, as determined by the 
President of the U.S.: freedom of the press, freedom of association, an 
independent and non-discriminatory judiciary, reduction or elimination 
of corruption relating to public officials, including the promulgation 
of laws prohibiting bribery of public officials and disclosure of 
assets by such officials; the establishment of an independent anti-
corruption commission; the establishment of an independent agency to 
audit financial activities of public officials, free and fair 
elections, practice of internationally recognized human rights, 
opposition to international terrorism as determined by the Secretary of 
State.
  The President may waive one or more of these requirements for 
emergency humanitarian relief purposes, if the President determines and 
certifies to Congress that it is in the national security interests of 
the U.S., or if the President determines that a recipient country is 
making demonstrable progress in the aforementioned areas.
  The President is to notify Congress of the justification for the 
determination of the countries that will receive a cancellation or 
reduction of debt according to the conditions in this legislation.
  Finally, this legislation conveys the sense of Congress that the 
President should instruct the U.S. director at each international 
financial institution to which the U.S. is a member to use the voice, 
vote, and influence of the U.S. to urge the cancellation or reduction 
of debt owed to the institution by a country only if the country meets 
the same requirements applicable in this legislation.
  Debt relief to poor countries as described in this legislation is 
responsible debt relief. Passage of this legislation could help to 
foster the growth and development of democracy, respect for human 
rights, the promotion of religious freedom, the establishment of 
freedom of the press, and greater freedom of association in poor 
countries through helping these countries to have economic growth that 
will help their people.
  We need to help poor people in these countries overcome their debt 
burdens but it must be done responsibly. Rather than just write off 
debt from poor countries, this legislation sets up a framework to help 
those nations in their struggle toward democracy. It says progress in 
democratic reforms, honoring human rights, and opposition to terrorism 
are important for developing or poor countries. It says that one of the 
ways to help the poor is to give them opportunities created by 
engendering democracy, transparency, and much needed relief from their 
country's overwhelming debt burden. Lastly it says that if those goals 
are met, the U.S. will help those countries struggling to help their 
citizens to a better, more prosperous life.
  I introduce this legislation to begin the discussion of how the U.S. 
can help bring hope to the poorest people in the world through the 
promotion of debt relief and good government. While this legislation 
may not be the perfect answer, I am hopeful this legislation could 
provide the foundation for discussion on how to help the poor and give 
them opportunities so that the next Congress and the next 
Administration can deal with this important issue.

                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Responsible Debt Relief and 
     Democracy Reform Act''.

     SEC. 2. ADDITIONAL REQUIREMENTS FOR CANCELLATION OR REDUCTION 
                   OF DEBT OWED TO THE UNITED STATES.

       The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) 
     is maneded by adding at the end the following:
  ``PART VI--ADDITIONAL REQUIREMENTS FOR CANCELLATION OR REDUCTION OF 
                     DEBT OWED TO THE UNITED STATES

     ``SEC. 901. CANCELLATION OR REDUCTION OF DEBT.

       ``Beginning on and after the date of the enactment of this 
     part, the President may cancel or reduce amounts owed to the 
     United States (or any agency of the United States) by foreign 
     countries as a result of concessional or nonconcessional 
     loans made, guarantees issued, or credits extended under any 
     other provision of law only if, in addition to the 
     requirements contained under the applicable provisions of law 
     providing authority for the debt cancellation or reduction, 
     the requirements contained in section 902 are satisfied.

     ``SEC. 902. ADDITIONAL REQUIREMENTS.

       ``(a) In General.--A foreign country shall be eligible for 
     cancellation or reduction of debt under any other provision 
     of law only if the government of the country--
       ``(1) ensures freedom of the press;
       ``(2) ensures freedom of association;
       ``(3) has established an independent and nondiscriminatory 
     judiciary;
       ``(4) provides for the reduction or elimination of 
     corruption relating to public officials, including--
       ``(A) the promulgation of laws to prohibit bribery of and 
     by public officials, including disclosure of assets by such 
     officials upon taking office, periodically while in office, 
     and upon leaving office;
       ``(B) the establishment of an independent anti-corruption 
     commission--
       ``(i) to receive and verify the disclosure of assets by 
     public officials in accordance with subparagraph (A); and
       ``(ii) to investigate allegations or corruption or 
     misconduct by public officials and to make all findings 
     available to the appropriate administrative or judicial 
     entities; and
       ``(C) the establishment of an independent agency--
       ``(i) to audit the financial activities of public officials 
     and agencies; and
       ``(ii) to make all audits under clause (i) available to the 
     appropriate administrative or judicial entities;
       ``(5) is elected through free and fair elections
       ``(6) does not engage in a consistent pattern of gross 
     violations of internationally recognized human rights; and
       ``(7) does not repeatedly provided support for acts of 
     international terrorism, as determined by the Secretary of 
     State under section 6(j)(1) of the Export Administration Act 
     of 1979 (50 U.S.C. App. 2405(j)(1)) or section 620A(a) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).
       ``(b) Exceptions.--The President may waive the application 
     of 1 or more of the requirements of subsection (a) with 
     respect to the cancellation or reduction of debt owed to the 
     United States by a foreign country--
       ``(1) for emergency humanitarian relief purposes;
       ``(2) if the President determines that it is in the 
     national security interests of the United States to do so; or
       ``(3) if the President determines that the foreign country 
     is making demonstrable progress in meeting the requirements 
     of paragraphs (1) through (7) of subsection (a) by adopting 
     appropriate legal and other related reforms.
       ``(c) Congressional Notification.--Not later than 7 days 
     prior to the cancellation or reduction of debt in accordance 
     with section 901, the President shall transmit to the 
     Congress a report that contains a justification for the 
     determination by the President that--
       ``(1) the requirements contained in each of paragraphs (1) 
     through (7) of subsection (a) have been satisfied with 
     respect to the foreign country involved; or
       ``(2) the requirement of paragraph (1), (2), or (3) of 
     subsection (b) has been satisfied with respect to the foreign 
     country involved.''

     SEC. 3. SENSE OF THE CONGRESS RELATING TO CANCELLATION OR 
                   REDUCTION OF MULTILATERAL DEBT.

       It is the sense of the Congress that the President should 
     instruct the United States Executive Director at each 
     international financial institution to which the United 
     States is a member to use the voice, vote, and influence of 
     the United States to urge that the cancellation or reduction 
     of debt owed to the institution by a country may be provided 
     only if the country meets the same requirements applicable to 
     the cancellation or reduction of amounts owed to the United 
     States under paragraphs (1) through (7) of section 902(b) of 
     the Foreign Assistance Act of 1961 (as added by section 2).

     

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